In India, registering a society is a pathway for non-profit organizations to formalize their operations, aiming to promote charitable activities such as culture, art, education, etc. This article will guide you through the process of society registration in India and discuss the subsequent benefits of obtaining 12A and 80G registrations.
Steps for Society Registration in India
Step 1: Select a Unique Name
The first step in the society registration process of society registration is to choose a unique name. The name should not infringe on existing trademarks or be too similar to the names of other registered societies.
Step 2: Prepare a Memorandum of Association (MoA) and Rules & Regulations
The MoA should include:
- The name and objectives of the society.
- The details of the members forming the society.
- The address of the registered office of the society.
The Rules & Regulations document should detail the governance of the society, including membership criteria, meeting protocols, and the process for electing the managing committee.
Step 3: Obtain Signatures from Founding Members
The MoA and the Rules & Regulations need to be signed by all founding members, witnessed by an Oath Commissioner, Notary Public, Gazetted Officer, Advocate, or Chartered Accountant.
Step 4: Submit the Application
The signed documents along with an application for registration should be submitted to the respective Registrar of Societies in your state. The application usually must include:
- A covering letter requesting registration.
- MoA and Rules & Regulations.
- Consent letters of all the members of the managing committee.
- Authority letter duly signed by all members of the managing committee.
- A declaration by the president of the society.
Step 5: Registration Certificate
Once the documents are submitted and fees paid, the Registrar of Societies will review the application. If satisfied, they will issue a Certificate of Registration, officially recognizing the society.
Benefits of 12A and 80G Registrations after Society Registration
After registering a society, obtaining 12A and 80G certifications can provide significant financial 12A and 80G certification benefits:
Benefits of 12A Registration
- Tax Exemption: Registration under section 12A allows a society to gain exemption from paying income tax on their surplus income.
- Government Funding: A 12A registered society can avail government funding.
- Credibility: Enhances the credibility amongst donors and governing bodies.
Benefits of 80G Registration
- Donor Incentives: Donors to a 12A registered society with 80G certification can claim deductions on their taxable income, making it an attractive prospect for donations.
- Enhanced Funding Opportunities: With 80G, societies can attract more donors.
Process for 12A and 80G Registrations
Step 1: Preparation of Documents
You will need the following documents:
- Certified copies of MoA and Rules & Regulations.
- Copy of the Registration Certificate.
- Copies of the annual financial statements of the society (last three years).
- List of donors along with their PAN and donation amounts.
- List of welfare activities carried out & progress report.
Step 2: Filing the Application
The application for 12A and 80G certifications must be submitted to the Commissioner of Income Tax along with the necessary documents.
Step 3: Verification Process
Upon receiving the application, the Income Tax Department will scrutinize the documents and may call for a hearing if required.
Step 4: Grant of Certification
Once the department is satisfied with the genuineness of the society and the documents submitted, it will grant the 12A and 80G certificates.
Conclusion
The process of society registration in India is a structured pathway towards establishing a legally recognized non-profit organization. Subsequent registrations like 12A and 80G not only offer tax advantages but also make the society more appealing to donors, crucial for sustaining and expanding their charitable activities.
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